What is a Countervailing Duty?

Define Countervailing Duties.

Countervailing duties (CVDs)

Countervailing duties are tariffs applied to balance (countervail) the effect of export subsidies conceded by the government of an exporting country. Countervailing duties (CVDs) counteract subsidies by national authorities that unfairly enable their companies to export at a lower price.

It is also known as anti-subsidy duties, are trade import duties imposed under World Trade Organization (WTO) guidelines to neutralize the negative effects of subsidies. They are imposed after an investigation finds that a foreign country subsidizes its exports, harming domestic producers in the importing country. The duties are calculated to duplicate the value of the subsidy.

The terms ‘Subsidies and countervailing duties’ are used together as the measures of countervailing duty that are taken against the subsidies accessible to exporters of foreign countries.

 Subsidy may be in the nature of direct or indirect grant on production or exportation of goods and also includes any special subsidy on transportation of any specific product. It is the government that acts either by allowing subsidies directly or by requiring companies to subsidize certain customers.

Countervailing duties (duties offsetting subsidies) do two things: they discipline the use of subsidies, and manage the actions that countries can take to counter the impacts of subsidies.




Learn Exports Imports Free, Click here

Click here to know GST rate of your goods or service


 How to book empty container for factory/CFS/ICD/port stuffing

 How to calculate CBM in LCL export shipments:

 How to calculate chargeable weight under airfreight in exports?

How to check the time of contract on high sea sale transaction?

How to Choose a product for export business

How to cover the risk of Cargo loss or damage

 How to customs clear Cargo arrived in a port where in import license obtained for another port

 How to differentiate BL and HBL?

 How to differentiate CPT and DAP in shipping terms

 How to divert cargo from one port to another?

How to export from Cote d’Ivoire?

How to Import to Cote d’Ivoire?

How to import to India from Cote d’Ivoire?

How to export from India to Cote d’Ivoire?

How to export from Comoros?

How to claim ITC under imports?

Procedures to claim Drawback after GST implantation

How to claim IGST refund on exports?

Export procedure changes after GST implementation

Factory stuffing procedures after GST implementation

Import of goods attracts IGST but not CVD under GST regime

Import goods attracts IGST and CVD under GST regime

Import Goods attract IGST, CVD and Compensation Cess under GST regime

Safeguard duty and Anti-dumping duty after GST implementation

Term goods and services tax practitioners under GST

Goods and Services Tax Dispute Settlement Authority under GST

What is GST Council and GST council meeting

GDP growth under GST

What is Fundamental GST Objective

Functions of GSTN under mode of payment of GST Means

Meaning of Full compliance under GST


Discussion Forum

You can also share your thoughts about this article.
Any one can answer on question posted by Readers